Toys ‘R’ Us looks set to sell its 82-store Canadian arm to Toronto-based investment firm Fairfax Financial for around $234 million, while its European operations in Germany, Austria and Switzerland are likely to be rebranded under a deal with Ireland-based Smyths Toys.
US-based Toys ‘R’ Us Inc., which is currently liquidating its 800+ stores in America, has received approval at a bankruptcy court hearing to sell its Canadian operations to Fairfax, who will continue to operate the business under its existing name.
But under a separate European deal with Smyths around 93 stores will be rebranded to its new owner’s moniker, almost doubling the presence of the specialty toy retailer in Europe.
The moves come as the liquidating US-based Toys ‘R’ Us Inc. looks to offload its various international operations as it prepares to close its 800+ stores in America.
Thanks for supporting #SaveToysRUs. I’ve decided to end the #GoFundMe campaign and return all contributions. I’ll keep fighting behind the scenes to save this American icon and ensure future generations can be #ToysRUs kids. Visit https://t.co/BcAA1OtE0Z for my full statement. pic.twitter.com/pAGv9JuYSa
— Isaac Larian (@isaaclarian) 26 April 2018
Multiple billion dollar-plus bids have reportedly been made for Toys ‘R’ Us Asia, the arm which includes Australian operations, but no official offers have been lodged yet.
Toy Mogul Isaac Larian, the CEO of Bratz Dolls maker MGA entertainment, had made a $675 million bid for Toys ‘R’ Us’ operations in the United States and Canada, but the offer was dismissed as a low ball.
Larian has said he’s still interested in purchasing the US business, which is still trading across more than 700 stores.
Larian, who had launched a #savetoysrus Go Fund Me campaign last month in a bid to raise funds for a $1 billion bid, closed the campaign overnight after it failed to reach anywhere near its target, announcing he will return all contributions.
“I’m thankful for the outpouring of support the campaign to Save Toys”R”Us has received from the community and I’m working behind the scenes to ensure this retailer has a future here in the U.S,” Larian said.
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